GM's Strategic Shift: Balancing Combustion Trucks & Future EVs

At Kunes Auto Group of Mt. Carroll, IL, we keep a keen eye on the automotive industry trends, and one of the key players, General Motors (GM), has recently made some noteworthy decisions about their manufacturing strategies. GM, it seems, is setting the pace by planning to maintain production of their popular internal combustion-engine (ICE) trucks and SUVs longer than initially predicted - stretching another 10 to 12 years, according to industry analysts and suppliers.

GM's move is a calculated one. The auto giant committed to a fully electric fleet by 2035, while strategically maintaining production of their gas-powered trucks and SUVs. Analysts initially expected this to happen before 2035, but GM seems to have different plans.

The extended timeline for the production of ICE vehicles will allow GM to accumulate additional profit, as estimated by industry experts. This noteworthy potential is at the heart of GM's recent announcement to substantially invest in the retooling and upgrading of multiple North American plants.

This investment will flow into five of their plants across the United States and Canada, including two in Flint, Michigan, one each in Arlington, Texas; Fort Wayne, Indiana; and Oshawa, Ontario. While GM has remained tight-lipped about specific product plans, they have confirmed that these plants will continue to manufacture full-sized ICE vehicles.

GM’s decision to keep their ICE vehicle production rolling "for years to come" will likely be music to the ears of investors and the United Auto Workers. The fate of combustion vehicle-related jobs is a pivotal concern for the union, which is set to begin negotiations with GM on a new multi-year labor agreement this summer.

GM executives have openly stated that vehicles powered by internal combustion-engines will remain an important part of the company's product lineup. In April, GM's Chief Financial Officer, Paul Jacobson, stated that the company is strategically moving towards a new direction, taking advantage of their existing lineup of ICE vehicles and introducing new and updated models to keep their customer demand strong.

It's important to note, however, that GM executives understand it might take years before their new electric vehicles (EVs) start attracting customers in numbers that match the profit from gas-powered Chevrolet Silverado pickups and Cadillac Escalade SUVs.

That said, GM's electric journey is not on hold. The automaker is getting ready to launch the next-generation Tahoe, Suburban, Yukon, and Yukon XL in early 2028. The plan is to gradually reduce annual production of large SUVs, as they introduce new electric companions starting around mid-decade.

In this dynamic automotive landscape, we at Kunes Auto Group of Mt. Carroll, IL, will remain your steadfast source of updates and insights. Our commitment is to keep you informed about these exciting developments, as we all gear up for the ride of a lifetime in this ever-evolving industry. So, stay plugged in with us for more updates from the world of automobiles!